The Analysis of the Monetary Policy of the Czech National Bank in the Period 2000 – 2022 and Comparison with the Monetary Policy Conducted by the European Central Bank.

The aim of this project is to analyze the effectiveness of the monetary policy of the Czech National Bank (CNB) in the period from 2000 to 2022. The results will provide a valuable contribution to the debate what is behind the current high level of prices in the Czech economy as well. The project will analyze the impact of particular monetary policy instruments, which have been conducted by the CNB on the inflation rate. The primary attention will be given to FX interventions and changes in interest rates. The project will also focus on the comparison of the Czech monetary policy with the monetary policy conducted by the European Central Bank (ECB). This comparison is beneficial also because the ECB, unlike the CNB, has conducted an unconventional monetary instrument - quantitative easing (QE). The research will be done on official statistical data of the CNB and the ECB. Vector auto regression (VAR) models will be used as a main research method. The project will also use other econometric and statistical methods. Add on to current state of the art is application of capital utilization to national economy productivity measurement to the impact of economic cycles in the context of substitution between monetary and alternative economic policies.